HONG KONG (Nikkei Markets) -- Budweiser Brewing Company APAC expects to raise up to HK$76.45 billion ($9.8 billion) in gross proceeds from an initial public offering in Hong Kong, according to sources, in what could rank among the largest listings in the city this year.
The Asia-Pacific arm of Anheuser-Busch InBev Group is offering 1.63 billion shares in an indicative pricing range of HK$40 to HK$47 apiece, two persons familiar with the matter said on Tuesday. The offer has a greenshoe option for up to 15% of the deal, they said.
Ninety-five percent of the offering will be set aside for international investors and 5% for Hong Kong investors.
If the IPO is priced at the top of the range, Budweiser Brewing will have an implied market capitalization of $63.7 billion before over-allocation is exercised.
Net proceeds from the brewing major's offering will all be used to repay loans due to parent AB InBev units as part of a reorganization.
Budweiser Brewing currently has a portfolio of more than 50 beer brands including Budweiser, Stella Artois and Corona. It posted a profit of $351 million in the three months ended Mar. 31, up 1.4% from the year-ago period. Revenue for the quarter decreased 1.9% to $1.99 billion.
The IPO comes at a time when U.S.-listed Chinese e-commerce major Alibaba Group Holding is also looking to list its shares for a dual listing in the city. Alibaba reportedly plans to raise about $20 billion from its Hong Kong offering.
The subscription books for Budweiser Brewing's offering opened on Tuesday and will close on July 11. Trading in the company's shares is expected to start on the Hong Kong stock exchange's main board on July 19 under the code 1876.
JP Morgan and Morgan Stanley are the joint sponsors of the offering.
--Benny Kung and Carrie Chen